Business / Economy
Ministry of Finance to set up Recovered Assets Fund
24 Jun 2013 at 13:36hrs | Views
The Ministry of Finance will soon set up a Recovered Assets Fund following the passing of the Money Laundering and Proceeds of Crime Bill 2013 last week.
According to the Bill, the funds will be used to compensate victims who suffer losses as a result of serious offences or terrorists' acts and will pay expenses relating to the recovery, management and disposition of property including mortgages and liens against relevant property and the fees of receivers, trustees, managers or other professionals providing assistance.
The funds will be administered by the Reserve Bank of Zimbabwe and its accounts will be audited by the Comptroller and Auditor-General.
The Bill repeals and replaces the Serious Offences (Confiscation of Profits) Act and amend other Acts with a view to enacting a comprehensive legal framework to combat money laundering and terrorist financing. It will also strengthen the legislative defences against misuse of the financial system for the purpose of money laundering or the financing of terrorist activities.
The Bill is divided into seven chapters, of which Chapters 4 and 5 will be administered by the Minister of Justice, and the remaining Chapters will be administered by the Minister of Finance. The five chapters that will be administered by the Minister of Finance are meant to strengthen the Bank Use Promotion and Suppression of Money Laundering (BUPSMIL) Act in line with identified deficiencies.
Financial institutions will be called on to carry out ongoing Customer Due Diligence (CDD). Under the diligence they will be able to identify the ultimate beneficial owner on whose behalf a transaction is being conducted. This means that financial institutions are prohibited from allowing a customer to open an anonymous account or to open an account using a fictitious name and that shareholders and directors of financial institutions to pass a "fit and proper" test and removal of those who subsequently cease to meet the test.
The Bill will explicitly cover as predicate offences for money laundering offences committed in other countries, which would constitute predicate offences in Zimbabwe had they been committed in the country. In addition, the Bill provides detailed mechanisms and procedures for freezing and confiscation of proceeds of crime. It also makes provision for civil forfeiture.
Finance minister Tendai Biti said it was critical that Zimbabwe passed the Bill into Law before June 20 2013, a deadline set by an inter-governmental organisation called the Financial Action Task Force at the plenary meeting held in Oslo on 17 June 2013.
According to the Bill, the funds will be used to compensate victims who suffer losses as a result of serious offences or terrorists' acts and will pay expenses relating to the recovery, management and disposition of property including mortgages and liens against relevant property and the fees of receivers, trustees, managers or other professionals providing assistance.
The funds will be administered by the Reserve Bank of Zimbabwe and its accounts will be audited by the Comptroller and Auditor-General.
The Bill repeals and replaces the Serious Offences (Confiscation of Profits) Act and amend other Acts with a view to enacting a comprehensive legal framework to combat money laundering and terrorist financing. It will also strengthen the legislative defences against misuse of the financial system for the purpose of money laundering or the financing of terrorist activities.
Financial institutions will be called on to carry out ongoing Customer Due Diligence (CDD). Under the diligence they will be able to identify the ultimate beneficial owner on whose behalf a transaction is being conducted. This means that financial institutions are prohibited from allowing a customer to open an anonymous account or to open an account using a fictitious name and that shareholders and directors of financial institutions to pass a "fit and proper" test and removal of those who subsequently cease to meet the test.
The Bill will explicitly cover as predicate offences for money laundering offences committed in other countries, which would constitute predicate offences in Zimbabwe had they been committed in the country. In addition, the Bill provides detailed mechanisms and procedures for freezing and confiscation of proceeds of crime. It also makes provision for civil forfeiture.
Finance minister Tendai Biti said it was critical that Zimbabwe passed the Bill into Law before June 20 2013, a deadline set by an inter-governmental organisation called the Financial Action Task Force at the plenary meeting held in Oslo on 17 June 2013.
Source - finx
